RFT, RFP, EOI: What Do They All Mean?
When it comes to procurement, tenders and business proposals, you’ll often come across acronyms like RFT, RFP, and EOI. These are essential documents used by private organisations and governments to procure goods and services from external vendors. But what do they really mean, and how do they differ?
Let's break them down.
Request for Tender (RFT)
A Request for Tender (RFT) is a formal invitation to suppliers to submit a bid for the supply of goods or services. It is typically used for large-scale or complex projects where price, capability, and compliance with specific requirements are key factors.
Key Features of RFT:
Highly detailed and structured
Specifies exact requirements and evaluation criteria
Legally binding once accepted
Used for competitive bidding processes
When is an RFT Used?
Government contracts
Large-scale infrastructure projects
Procurement of specialised goods or services
Request for Proposal (RFP)
A Request for Proposal (RFP) is a document that asks potential suppliers to propose how they can meet a specific need or solve a problem. Unlike an RFT, an RFP allows for flexibility and creativity in how vendors can approach the project.
Key Features of RFP:
Focuses on the “how” rather than just the “what”
Encourages suppliers to present innovative solutions
Less rigid than an RFT but still structured
Used when the buyer is open to different approaches
When is an RFP Used?
IT solutions and software development
Consulting services
Marketing and creative projects
Expression of Interest (EOI)
An Expression of Interest (EOI) is a preliminary step used to gauge interest and capability before issuing an RFP or RFT. It helps organizations shortlist potential suppliers before proceeding with a more detailed tender process.
Key Features of EOI:
Used for market research and pre-qualification
Less detailed than an RFP or RFT
Helps in narrowing down potential suppliers
Not legally binding
When is an EOI Used?
When exploring available vendors before committing to a full tender
When seeking innovative ideas or potential partners
In early-stage project planning
Conclusion
Understanding the differences between RFT, RFP, and EOI is crucial for both buyers and suppliers. Whether you're a business looking to bid on contracts or an organization seeking the best provider, knowing when and how to use these documents can streamline the procurement process and lead to better outcomes.
Lastly
If you are having any issues with any of the above, feel free to reach out to the team ay Bid Wizard. We’re more than happy to talk through how we can help you achieve your tender win goals!
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